Filipino tobacco farmers, advocacy groups, business and political leaders welcomed the signing of the Anti-Agricultural Economic Sabotage Act, which aims to safeguard local livelihoods from illicit trade and protect the agriculture sector.
“We are deeply grateful to President Ferdinand ‘Bongbong’ Marcos Jr. and his administration for their unwavering support in enacting this law. With its implementation, we are hopeful that tobacco farming will receive adequate protection against the entry of illegal products,” said Saturnino Distor, president of the Philippine Tobacco Growers Association (PTGA), after the signing of Republic Act No. 12022.
President Marcos signed the law on Sept. 26, 2024, to combat agricultural smuggling, profiteering and hoarding. It aims to make food more affordable, accessible and provide better income to local farmers.
The law classifies smuggling, hoarding, profiteering, cartel formation and financing of these crimes involving agricultural and fishery products as acts of economic sabotage. Violators could face life imprisonment and fines up to five times the value of the goods involved.
President Marcos said the passage of the law would set in motion transformative outcomes. “It is a proactive measure to prevent smuggled agricultural products from entering the country, ensuring that duties and taxes are paid while imposing higher penalties on violators. This law shapes a stronger, more resilient agricultural sector that defends both our farmers and consumers,” he said.
The PTGA, which represents 50,000 tobacco farmers, described the law as a critical step to protect the industry from smuggled tobacco. Distor noted that illegal cigarettes harm farmers, especially with the rising prices of legal cigarettes due to tax increases. “We hope the government’s action against smugglers will improve the state of Philippine tobacco and bring relief to our farmers and their families,” he said.
Advocacy group EKIS sa Smuggling’s lead convenor Anton Israel expressed gratitude for the approval of the law. “We’ve seen the damaging impact of smuggling, particularly the proliferation of fake and illegal nicotine products. This new law strengthens the fight against illicit cigarette and e-cigarette trade,” he said.
Chris Nelson, executive director of the British Chamber of Commerce in the Philippines, also welcomed the legislation, saying the chamber expects to see significant growth in the agricultural sector for both local producers and legitimate importers.
Under the law, tobacco crops and cigarettes valued at P3 million or more fall under the classification of economic sabotage, making it a non-bailable offense. President Marcos said the law targets not only the masterminds but also their accomplices, including financiers, brokers, employees and even transporters.
The law is designed to level the playing field for local farmers by combating agricultural smuggling, which is partly responsible for rising food prices. It also amends RA 10845, the original Anti-Agricultural Smuggling Act of 2016.
Senate President Francis Escudero said the measure sends a strong message that the government will hold accountable those involved in smuggling, hoarding, profiteering, and other uncompetitive practices in the agriculture sector. He noted that by cracking down on these crimes, the public would be better protected from substandard goods.
“Farmers, fisherfolk, and legitimate traders have long suffered from the operations of smugglers and other market manipulators,” Escudero said.
Senator Cynthia Villar, chairperson of the Senate Committee on Agriculture, Food and Agrarian Reform, who sponsored the bill, described the law as a form of self-preservation against economic saboteurs. “This will protect the State from tax evaders and ensure the well-being of our agricultural producers, consumers, and the entire economy,” Villar said.
House Speaker Ferdinand Martin Romualdez echoed these sentiments, calling the law a turning point in the fight to protect Filipino farmers and fisherfolk. “With the Anti-Agricultural Economic Sabotage Act in place, we are sending a clear message: there will be no tolerance for those who manipulate the market and jeopardize our food supply,” he said.
